Business
Sampath Bank maintains its growth momentum in 2025, recording a 21% increase in profit after tax for the nine-month period
Sampath Bank reported a Profit Before Tax (PBT) of Rs 35.3 Bn and a Profit After Tax (PAT) of Rs 21.5 Bn for the nine-month period ended 30th September 2025, reflecting consistent year-on-year growth of 18% and 21% respectively. Furthermore, the Group delivered a strong financial performance, recording a PBT of Rs 38.0 Bn and a PAT of Rs 23.1 Bn for the same period, marking growth of 19% and 21% respectively.
The Bank’s total interest income declined by 3% year-on-year for the nine-month period ended 30th September 2025, reaching Rs 134.0 Bn. This decrease was primarily driven by the continued reduction in the Average Weighted Prime Lending Rate (AWPLR) and lower yields from government securities. Interest expenses saw a corresponding decrease of 2% year-on-year to Rs 76.8 Bn, reflecting the overall downward trend in market interest rates. Consequently, the Bank’s Net Interest Income (NII) contracted by 6% year-on-year to Rs 57.2 Bn. The Net Interest Margin (NIM) narrowed by 81 basis points, from 4.90% as at 31st December 2024, to 4.09% as at 30th September 2025.
The Bank reported a robust 107% year-on-year increase in total non-fund based income, reaching Rs 23.9 Bn for the nine-month period ended 30th September 2025.
Net fee and commission income, amounting to Rs 15.6 Bn, saw a robust 20% year-on-year growth, driven by strong performances in key business areas, including advances, cards, trade, operations, and electronic banking services.
The Bank also recorded a total exchange gain of Rs 3.5 Bn during the period, marking a notable turnaround from the exchange loss of Rs 3.5 Bn reported in the same period last year.
For the nine-month period ended 30th September 2025, the Bank recorded a total impairment charge of Rs 2.0 Bn, representing a significant decrease of 62% compared to the corresponding period in 2024.
Notwithstanding a significant 18.9% expansion in the Bank’s loan portfolio during the period under review, impairment charges on loans and advances declined by 27% year-on-year. This reduction was largely attributable to improved credit quality and stronger repayment capacity across the customer base, supported by favorable macroeconomic conditions and an optimistic business outlook.
The Bank conducted a comprehensive assessment of its ISL customer portfolio, recognising tailored provisions in its Financial Statements to reflect the specific credit risk profiles of ISL customers. In line with its prudent risk management policy, the Bank continued to maintain sound collective impairment provisions, ensuring adequate buffers against potential future credit losses. Notably, the core models used for collective provisioning remained consistent with those applied in 2024.
The reversal of Rs 0.8 Bn (2024: charge of Rs 1.1 Bn) relating to credit-related commitments and contingencies reflects the overall improvement in the credit quality of the Bank’s customer base.
Impairment charge on other financial instruments
An impairment charge of Rs 0.6 Bn was recognised on other financial instruments during the reporting period, primarily attributable to newly acquired investments.
Operating Expenses
During the reporting period, the Bank’s operating expenses increased by 19% compared to the same period in 2024, primarily driven by higher personnel costs as a result of annual salary revisions as well as key strategic initiatives embarked upon by the Bank requiring an expansion of the Bank’s staff cadre and IT related costs. As expense growth continued to outpace the increase in operating income, the Bank’s cost-to-income ratio (CIR) deteriorated by 240 basis points, reaching 41.3%, compared to 38.9% in the corresponding period of the previous year.
Sampath Bank continued to demonstrate strong financial resilience during the period under review, maintaining capital adequacy well above the minimum regulatory requirements.
Liquidity levels remained robust, with the All-Currency Liquidity Coverage Ratio (LCR) at 249.0% and the Net Stable Funding Ratio (NSFR) at 181.2%, compared to 307.4% and 198.7%, respectively, as at year-end 2024.
Sampath Bank’s total assets grew by 10% during the reporting period, reflecting an annualized growth rate of 13%. Total assets reached Rs 1.95 Tn as at 30th September 2025, up from Rs 1.78 Tn reported at the previous year-end. This growth was primarily driven by the expansion of the Bank’s loan portfolio.
During the period, the Bank’s investment portfolio recorded a marginal decline, primarily reflecting the strategic reallocation of funds towards lending growth following the maturity of short-term investment securities.
Business
USD 50 mn battery storage investment expected to power SL’s renewable energy push
Sri Lanka has taken a major step towards modernising its power infrastructure with the arrival of the country’s first commercial-scale Battery Energy Storage System (BESS), part of a USD 50 million investment expected to transform the integration of renewable energy into the national grid.
The first shipment of battery units arrived at the Port of Colombo recently for the landmark Galle and Matara BESS projects being developed by Galilee BESS (Pvt) Ltd, a subsidiary of KHEN Energy Limited. The projects are expected to play a pivotal role in enhancing grid stability, reducing renewable energy curtailment and strengthening the country’s energy security.
The shipment comprised 25 containers, including 18 battery units weighing 42 metric tonnes each, making it one of the largest and most technically demanding renewable energy cargo movements handled in Sri Lanka to date.
Energy industry officials describe the project as a milestone investment that will help bridge one of the biggest challenges facing renewable energy development—storing electricity generated from intermittent sources such as solar and wind power for use when demand peaks.
Once operational, the BESS facilities will support the National System Operator by absorbing excess renewable energy during periods of high generation and releasing it when required, thereby improving efficiency and reliability across the power network.
The technology is being supplied by global energy storage leader Sungrow Power Supply Co., Ltd., reflecting growing international confidence in Sri Lanka’s renewable energy sector and its long-term clean energy ambitions.
Beyond its energy significance, the project also highlights the increasing scale and sophistication of infrastructure investments entering the country.
Expolanka Freight (Pvt) Ltd was entrusted with the end-to-end logistics operation, overseeing customs clearance, specialised transportation, storage, unloading and final placement of the battery units at the project sites.
Finance and Project Director Fazul Ansar said the operation required extensive engineering studies, route assessments and rigorous safety planning owing to the hazardous classification and extraordinary weight of the cargo.
Head of Project Logistics Mohamed Niyas said months of preparation had gone into route surveys, lifting studies and risk mitigation planning to ensure the successful execution of the project.
Project officials said specialised multi-axle trailers and cranes with lifting capacities ranging from 100 to 150 tonnes were deployed for the operation, while access modifications and last-mile transport solutions were implemented at both project locations.
By Ifham Nizam
Business
AI and Data Analytics Summit 2026 drives the nation’s digital future
The AI and Data Analytics Summit 2026 organised by the Sri Lanka Section of BCS, the Chartered Institute for IT was successfully held on 22nd May 2026 at Waters Edge, Colombo. The high-impact summit themed “Next Generation AI & Data Analytics: Skills & Thoughts for the Intelligent Future” brought together senior policymakers, global technology experts, industry leaders, academics, and innovators to explore how Artificial Intelligence (AI) and Data Analytics are reshaping the nation’s digital and economic future.
The event, endorsed by the Ministry of Digital Economy, was graced by Waruna Sri Dhanapala, Secretary to the Ministry of Digital Economy, who attended as the Guest of Honour, underscoring the government’s strong commitment to advancing AI adoption, digital innovation, and data-driven governance in support of Sri Lanka’s broader public sector transformation agenda. Dr. Sadeep Jayasumana, Chief Scientist at Octave, delivered the keynote address on Generative AI, sharing insights into its transformative potential.
Speaking on the significance of the summit, Prof. Lasith Gunawardena, Chairman the Sri Lanka Section of BCS, the Chartered Institute for IT noted that Artificial Intelligence and Data Analytics have become present-day enablers of innovation, economic growth, and societal progress. He emphasized that the summit was guided by BCS’s purpose of Making IT Good for Society and by the national need to bring together thought leaders, practitioners, policymakers, and industry experts to foster collaboration, knowledge sharing, and the responsible adoption of transformative technologies, thereby strengthening Sri Lanka’s digital readiness and supporting a resilient, inclusive, and globally competitive digital economy.
Ransith Fernando, Chair of the summit mentioned ” This year’s summit brought together 21 speakers who shared valuable insights, ideas, and experiences. We heard inspiring success stories, gained practical knowledge from industry practitioners, and explored strategic perspectives from business leaders. These conversations highlighted both the opportunity and the responsibility before us. While innovation is accelerating globally, Sri Lanka must align policy, talent, and industry readiness to truly operationalize AI at scale and ensure an inclusive and sustainable digital transformation.”
Deshan Liyanage, Co-Chair of the AI and Data Analytics Summit 2026 commented that this year’s summit was a fully sold-out event, reflecting the growing national momentum around Artificial Intelligence and Data Analytics in Sri Lanka. He extended heartfelt gratitude to all participants who joined and contributed to the success of the summit, as well as to the sponsors whose support made the event possible. Special appreciation was conveyed to Sysco LABS as the Strategic Partner, Linear Six as the Bronze Partner, InTalent Asia as the Resource Partner, and Motivista as the Event Partner. He also acknowledged the valuable collaboration of industry associations including SLASSCOM, FITIS, and CSSL, whose partnership helped strengthen and elevate the initiative.
Business
Eswaran Brothers empowers women through a transformative leadership journey
As part of its commitment to advancing women’s empowerment and building a stronger leadership pipeline, Eswaran Brothers Exports (EB), a leading tea manufacturer in Sri Lanka, launched its flagship women’s leadership initiative, She Transforms, a customized six-month leadership development journey. Developed with award-winning leadership expert Senela Jayasuriya and supported by Value for Women, the programme forms a key pillar of the Company’s wider gender agenda focused on leadership capacity building, inclusion and long-term institutional change.
Women make up 44% of Eswaran Brothers’ workforce, yet only 23% held senior roles at the time of an initial gender diagnostic conducted with Value for Women and supported by FMO, the Dutch Development Finance Bank. The assessment found that despite their potential, many women faced unclear career pathways and limited structural support at critical life stages.
In response, Eswaran Brothers introduced strategic mindset and policy interventions designed to remove barriers and create a more enabling environment for women to grow and lead. These efforts included mentorship opportunities, enhanced support for employees returning from maternity leave, coaching for managers, and initiatives aimed at strengthening inclusion and career progression across the organization.
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